Varun Anand MacQuarie Infrastructure LLC MIC-N DON'T BUY Feb 10, 2020

He owns Brookfield Asset Management (BAM.A-T). There are good opportunities in infrastructure plays in the next little while. There is more and more talk about how the private sector has to work with the public sector. This company is very good at what they do. There are a lot of people involved in infrastructure these days, so you have to be cautious about what they pay to get something.

Has owned this in the past and thinks it is a long term holding. They are one of the leaders in this space. The whole developed world is going to be needing everything to be repaired, updated and replaced, so this company is going to play that game. Secondly, global energy, dams, etc. is still going to be very, very important. 6.2% dividend yield.

Had owned this, but was concerned with the high dividend. This is MacQuarie’s vehicle to invest globally in infrastructure projects. They can afford it, because they are using the assets to raise debt financing, and based off of that, the dividend is fine. It is on his radar. He switched to Brookfield Infrastructure (BIP-N).

(Top Pick Dec 7/16, Down 8.4%) It is a steady eddie stock. Someone came up with a short thesis and it went down. It pays a good solid dividend of almost 7%.

Why is MacQuarrie (MIC-N) weaker than Mastec (MTZ-N)? MacQuarrie Infrastructure, has a whole bunch of different types of hard assets and assets that are long life. It is going to act more like a bond because they are long life fairly predictable assets. Mastec is a company that is in a couple of secular themes, but is a growth stock. It is tightly tied to growth in a couple of areas. Thinks the secular changes taking place in both telecom equipment and pipelines, is significant. Mastek builds infrastructure, like pipelines, as well as being very big in maintenance and infrastructure work on cell towers, which are both going through very strong lifts. We are about to go through a process where all telcos are going to be putting up 5G equipment on cell towers, and Mastec gets paid to do that stuff.

It is the sector. There is money flowing around the marketplace. They do a good job but flows are not into this sector at this time. You either have to be patient or move the money to something with more legs.

He is not a fan of this sector as the value of commercial real estate and infrastructure assets is looking more like a bond. The sector could be hurt with higher interest rates. This company recently took it on the chin (he could not recall exactly why). This company is technically broken and the sector is at risk. He would move on.

Doesn't know much about it. Pays a huge dividend over 10%. There is policy risk here, so he wouldn't buy it, and it's taken a big hit recently.